Asked by Nicole E
Find the periodic payment R required to amortize a loan of P dollars over t yr with interest charged at the rate of r%/year compounded m times a year.
P = 16,000, r = 8, t = 6, m = 6
P = 16,000, r = 8, t = 6, m = 6
Answers
Answered by
helper
Here is the formula
A = P * (r(1+r)^n)/((1+r)^n - 1)
Just plug in your numbers
A = Payment/period
P = Principal
r = Rate/period
n = Total of payments or periods
If you post your answer I can check it for you.
A = P * (r(1+r)^n)/((1+r)^n - 1)
Just plug in your numbers
A = Payment/period
P = Principal
r = Rate/period
n = Total of payments or periods
If you post your answer I can check it for you.
Answered by
amy
i can't figure out what n will be.
Answered by
Nicole E
im guessing we have the same problem.
Answered by
helper
n = total payments or periods
Since it is compounded 6 times a year (unusual) n would be,
6 yrs * 6 times a yr = 36
Rate per period, r would be
0.08/6 = 0.0133
Since it is compounded 6 times a year (unusual) n would be,
6 yrs * 6 times a yr = 36
Rate per period, r would be
0.08/6 = 0.0133